Sony’s proposed patent has power to kill used game sales

Sony's proposed patent has power to kill used game sales

A new patent filed by Sony Corp. last September, and uncovered earlier this month by an intrepid member of game forum NeoGAF, suggests the Japanese hardware giant is researching new ways to restrict the sale of second-hand games.

The patent describes a tag-based technology that can lock physical discs to specific user accounts and/or devices. Discs embedded with the tag will communicate with machines via a protocol similar to near-field communication (NFC) technology, which allows for data to be transmitted wirelessly via radio waves when two devices are within close proximity.

The first time a game is inserted into a console it will automatically negotiate a use agreement with either the user’s account or the device itself. This agreement stipulates that the disc cannot be played on another machine without the presence of a specific user account, or potentially not any other devices at all.

The technology is not currently associated with any game playing machines, but it’s worth noting that Sony is said to be hard at work designing a fourth generation PlayStation, likely to launch this year or next.

Whether Sony will actually implement this technology is anyone’s guess.

Software publishers’ fight to restrict used game sales isn’t new. From product keys and limited installations of PC games to the more recent development of multiplayer passcodes and keys that unlock extra content in console games, it’s clear that game makers prefer customers spend their money on new software rather than used, the profits of which are reaped entirely by retailers.

However, publishers still rely on relationships with the retail industry to distribute their wares, especially for game consoles. They may want to steer stores away from selling used games, but implementing a technology that eliminates used game sales altogether would be akin to declaring war on their retail partners. GameStop, for example, earmed US$1.2-billion in total gross profits from used game and console sales in 2011.

What’s more, some industry analysts have suggested that the used game market may actually bolster the sales of new games. Low-income gamers, they argue, trade old games to accrue enough credit to purchase new, factory-sealed software they would otherwise not be able to afford.

Used game sellers aren’t the only ones worrying about this new technology. Sony’s patent also has potential to spell disaster for the game rental business, which relies on turning a profit from loaning the same discs dozens — sometimes hundreds — of times to different customers. An embedded tag that locks discs to accounts or consoles would be ruinous for this business model.

In the end, the patent could just be a case of a big technology company wanting to protect research it has no current intention to deploy. In light of the size of the current used game and game rental markets, it seems likely many gamers would refuse to invest in a new console that didn’t allow them to buy or play games their way. And given that the next generation of consoles is shaping up to be dangerously competitive and unpredictable, shunning a large and important chunk of its consumer base would seem not to be in Sony’s best interest.

You can view Sony’s United States patent application in its entirety here.